Down Payments: How much should I put down on a home?

September 25, 2018
Author: New England Home Mortgage

Have you heard of the 20% rule? Traditionally, you needed 20% as a down payment when buying a home. With different mortgage options, you can now go as low as 3% down, or in some special cases, 0% when buying a home.

The down payment is how much you pay upfront when buying a home, and is often the thing that is holding people back from becoming a homeowner.

“Lenders want to know you as a borrower have some of your own money in the game,” explains Brian Taylor, part owner and broker at NEHM.

With record-high rent, increasing debt (student or otherwise), and rising prices of real estate, it can be a challenge for homebuyers to save for a down payment. So how can you buy with less than 20% down? New England Home Mortgage explains loan options here. Every buyer has a unique need, which is why it is important to go through your options with a qualified mortgage expert.


When you dip below a 20% down payment, the lender may require private mortgage insurance (PMI). The cost of PMI varies depending on your down payment amount, the amount of the loan, and your credit score. This amount is usually added to your monthly mortgage payment.

It’s important to take many factors in to consideration when deciding how much of a down payment to put on a home. Other than your savings account, you’ll want to consider how long you plan to stay in the home, how much closing costs and realtor fees are, and how much renovating you want to do to the home.  

“It’s all about your finances,” says Taylor. “We give you the pros and cons of putting down more money or less money and let you know what the payment is for your monthly budget.”

Contact us to go over your down payment options today.

(860) 736-2747
37 W. Center Street, Suite 208, Factory Square, Southington, CT. 06489